Suppose a stock is paying a constant dividend of $3.40 annually, what would be the expected stock price one year later if currently the stock is sold at $62 and has an expected one-year holding period return of 19%?

Multiple Choice

• $56.30

• $84.46

• $105.57

• $70.38

A portfolio has a beta of 1.23, and an expected return of 16.16%. What would be the new expected return for this portfolio if the market risk premium increase from 6.16% to 8.41%?

Multiple Choice

• 28.39%

• 22.71%

• 18.93%

• 15.14%